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lp

Supernova AMM

Rejected
Max sleeve
Reviewed
2026-08-16 · v1
Next review
2026-11-15
Chains
Ethereum · sovereign

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Supernova is an Ethereum ve(3,3) exchange with basic volatile and stable pools plus Algebra concentrated-liquidity pools. Every surveyed LP claim supplies inventory that trades change; ranges, stable curves, gauges, emissions and dynamic fees alter execution but do not guarantee return of the deposited asset mix. DefiLlama measured $89,450 on 2026-08-16. The version-1 AMM-LP dossier therefore rejects the exact live perimeter; this is a mechanism decision, not an allegation about Supernova’s operators.

The research file

Mechanism and class applicability

Official technical documentation separates Uniswap-v2-style volatile pools, stable-swap pools and Algebra tick-based concentrated pools. Basic LPs own a pro-rata two-token reserve claim; concentrated LPs select price ranges and only active ranges receive emissions. In every case swaps alter the provider’s inventory. Stable correlation or a narrow range can reduce slippage or improve capital efficiency but does not eliminate adverse rebalancing.

Control, incentives and assurance

Pair factories, custom pool deployers, routers, gauges, GaugeManager, VoterV3 and permissions contracts define the live control surface. veNOVA voters allocate weekly emissions, and projects may add bribes, so displayed yield includes governance incentives as well as fees. Supernova publishes a Paladin audit and Hexagate monitoring; those reduce implementation uncertainty but do not remove inventory, token, gauge, upgrade or Ethereum execution risk.

Current perimeter and exit

DefiLlama reported $89,450 on Ethereum on 2026-08-16. An unstaked basic LP burns its receipt for current reserves; a staked LP must first exit its gauge. A concentrated provider must withdraw its NFT position and may receive a one-sided inventory if price left the range. Aggregate TVL is not executable depth for any pair, and a subsequent conversion depends on exact pool liquidity and slippage.

Comparison and measurable reopening test

Supernova basic pools share the inventory mechanism of Uniswap v2 and its concentrated pools share the range mechanism of Uniswap v3; ve(3,3) emissions add compensation, not principal protection. Reopen only for a separately accounted non-market-making product, or if an exact pool mandate documents approved assets, immutable bounds and authorities and demonstrates a proposed-size stressed exit without unacceptable inventory conversion.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.

ChainVerdictGradeControl constraint
EthereumApproved sovereign No sequencer, no upgrade key, no operator who can be compelled — rule changes require social consensus.
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